, Singapore

OSIM’s net profit expected to dip in FY14 as expansion costs take their toll

Don’t expect a turnaround in 1H15.

OSIM’s shareholders shouldn’t expect a fat payout at the end of FY14. According to Maybank Kim Eng, OSIM’s bottomline is expected to take a beating in FY14, as the costs of its TWG expansion is expected to materialise when the group reports its results on 3 February.

Maybank Kim Eng estimates OSIM’s earnings per share to have fallen 11% YoY, while earnings are expected to fall 20% YoY to $22.3m.

“1H15 should still be laden with expansion costs as TWG plans to enter Beijing, Guangdong and HK. However, we expect a stronger 2H15, as expansion costs should peter off and stores opened in 2H14 start to break even,” the report stated.
 

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